Travel & Tourism Sector Ranking Australia

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1 Travel & Tourism Sector Ranking Australia Summary of Findings, November 2013

2 Introduction Sector Ranking Analysis In order to better understand the importance of the Travel & Tourism industry in a global context, it is beneficial to compare the industry s performance and contributions to other major industries/sectors. Oxford Economics and WTTC created a ranking of Travel & Tourism across all sectors of the economy using various industry classifications across countries. Performance measures included in the analysis are: Employment (industry jobs & % contribution) GDP (GDP impacts and % of national GDP) The results of the analysis not only provide a comparison of Travel & Tourism to other industries, but also provide a view of how Travel & Tourism s contributions in different markets have performed over time. Countries included in the analysis are: Australia Germany South Korea United Kingdom United States Note: Please be aware that the data and figures that follow will involve some double-counting with regards to the Travel & Tourism sector, which contributes towards a range of related sectors in the table above (for example Hotels, Restaurants, Inland transport, Water transport, Air transport and Retail trade, except of motor vehicles and motorcycles; repair of household goods ). Accordingly, total employment and gross domestic product (GDP) for Australia will be the sum of the 59 sectors excluding Travel & Tourism. The Travel & Tourism sector is included separately given the approach used to devise the economic contribution estimates for the sector, using published Tourism Satellite Accounts (TSAs), GDP by expenditure and input-output framework as outlined in the following methodology document - It is not possible given this approach to estimate the Travel & tourism and non Travel & Tourism components of individual sectors i.e. to split up the number of jobs or amount of GDP in Hotels or Restaurants that is Travel & tourism related or otherwise. 2

3 Health care & social work Retail trade Construction Education Restaurants Other business activities Public administration and defence Travel & tourism commission trade Computer & related activities Recreational, cultural & sporting activities Inland transport Travel & Tourism in Australia - Total Employment Total Employment There were more than 11.6 million jobs in Australia in Travel & Tourism generated more than 505,000 jobs in Australia in 2013, ranking 8 th among major industries. This is larger than wholesale trade s and recreational, cultural, and sporting activities employment of 419,000 and 326,000, respectively. Australia - Total Employment by Industry (000's) ,600 1,400 1,200 1, ,380 1,235 1, Travel & Tourism s employment is slightly less than public administration s employment of 542,000 and approximately half of construction s employment of 1,050,

4 Health care & social work Retail trade Construction Education Restaurants Other business activities Public administration and defence Travel & tourism commission trade Computer & related activities Recreational, cultural & sporting activities Inland transport Travel & Tourism in Australia - % Total Economy Employment Share of Employment Travel & Tourism contributed 4.3% of Australia s total employment base of 11.6 million jobs. Australia - % Total Economy Employment by Industry % This is larger than wholesale trade s, computer and related activities and recreational, cultural, and sporting activities contributions of 3.6%, 2.8% and 2.8%, respectively. Travel & Tourism s contribution is on par with public administration s contribution of 4.7% and is close to half of retail trade s contribution of 10.6%. The health care and social work industry had the highest contribution in 2013, constituting 11.9% of Australia s employment base. 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 11.9% 10.6% 9.0% 7.6% 6.5% 6.2% 4.7% 4.3% 3.6% 2.8% 2.8% 2.7% Travel & Tourism s job contribution ranks 8 th among major industries. 0.0% 4

5 Travel & Tourism in Australia Industry Employment (2013, 2023) Rank Industry Industry Employment (000's) 2013 Share of Total Employment Rank Industry Industry Employment (000's) Share of Total Employment 1 Health care & social work 1, % 1 Health care & social work 1, % Retail trade, except of motor vehicles and motorcycles; 2 repair of household goods 1, % Retail trade, except of motor vehicles and motorcycles; 2 repair of household goods 1, % 3 Construction 1, % 3 Construction 1, % 4 Education % 4 Education % 5 Restaurants % 5 Other business activities % 6 Other business activities % 6 Restaurants % Public administration and defence; compulsory social 7 security % Public administration and defence; compulsory social 7 security % 8 Travel & tourism % 8 Travel & tourism % commission trade, except of motor 9 vehicles and motorcycles % 9 activities % 10 activities % commission trade, except of motor 10 vehicles and motorcycles % 11 Recreational, cultural and sporting activities % 11 Recreational, cultural and sporting activities % 12 Inland transport % 12 Inland transport %

6 Travel & Tourism in Australia Employment Share & Ranking Share of Employment & Ranking In 1990, Travel and Tourism s employment contribution ranked tenth among major industries, contributing 3.9% of Australia s employment base. Australia - Travel & Tourism: % Total Economy Employment & Industry Rank 6.00% 5.5% By 2000, the industry s employment share increased to 5.5% and raised the industry s rank to seventh, showing the increasing importance of Travel & Tourism to Australia s economy. 5.00% 4.00% 3.9% 7th 4.1% 4.2% 4.3% 4.0% After the global recession of 2008, Travel and Tourism s employment share dropped slightly to 4.1%, and the industry s rank dropped to eighth. 3.00% 10th 8th 8th 8th 8th Travel & Tourism s employment share has remained relatively flat over the past five years and is 4.3% in % 1.00% 0.00%

7 Travel & Tourism in Australia Industry Performance (Employment) % total economy employment Rank Retail trade, except of motor Retail trade, except of motor Retail trade, except of motor 1 vehicles and motorcycles; vehicles and motorcycles; vehicles and motorcycles; Health care & social w ork Health care & social w ork Health care & social w ork repair of household goods repair of household goods repair of household goods (11.8) (11.9) (12.7) (10.2) (10.5) (11.2) 2 Health care & social w ork (8.7) Health care & social w ork (9.7) Health care & social w ork (10.3) Retail trade, except of motor vehicles and motorcycles; repair of household goods (10.5) Retail trade, except of motor vehicles and motorcycles; repair of household goods (10.6) Retail trade, except of motor vehicles and motorcycles; repair of household goods (10.7) 3 Construction (7.4) Construction (7.4) Construction (9.3) Construction (8.8) Construction (9) Construction (9.8) 4 Education (6.7) Education (6.9) Education (7.2) Education (7.4) Education (7.6) Education (7.5) 5 commission trade, except of Other business activities Other business activities Restaurants (6.1) Restaurants (6.4) Restaurants (6.5) motor vehicles and (6.4) (6.3) motorcycles (5.5) 6 Agriculture (5.3) Restaurants (6.2) Other business activities (6) Other business activities Other business activities (6.2) (6.2) Restaurants (6.2) 7 Restaurants (5) Travel & tourism (5.5) 8 9 Other business activities (4.8) Public administration and defence; compulsory social security (4.6) 10 Travel & tourism (3.9) Public administration and defence; compulsory social security (4.6) Public administration and defence; compulsory social security (4.8) Public administration and defence; compulsory social security (4.7) Public administration and defence; compulsory social security (4.5) Agriculture (4.5) Travel & tourism (4.1) Travel & tourism (4.2) Travel & tourism (4.3) Travel & tourism (4) commission trade, except of motor vehicles and motorcycles (4.2) Public administration and defence; compulsory social security (4.1) commission trade, except of motor vehicles and motorcycles (3.6) Agriculture (3.1) 11 Inland transport (3.3) Inland transport (2.9) Inland transport (2.8) 12 Financial intermediation, except insurance and pension funding (2.8) 13 Other service activities (2.2) 14 Recreational, cultural and sporting activities (2.2) Recreational, cultural and sporting activities (2.6) activities (2.3) Post and telecommunications (2) 15 Food and beverages (2.1) Food and beverages (2) Recreational, cultural and sporting activities (2.7) activities (2.3) Financial intermediation, except insurance and pension funding (2.1) Sew age and refuse disposal, sanitation and similar activities (2) commission trade, except of motor vehicles and motorcycles (3.6) Recreational, cultural and sporting activities (2.8) activities (2.8) commission trade, except of motor vehicles and motorcycles (3.6) activities (2.8) Recreational, cultural and sporting activities (2.8) activities (3.4) commission trade, except of motor vehicles and motorcycles (3.2) Recreational, cultural and sporting activities (2.8) Agriculture (2.8) Inland transport (2.7) Inland transport (2.6) Inland transport (2.6) Agriculture (2.6) Agriculture (2.4) Financial intermediation, except insurance and pension funding (1.9) Sew age and refuse disposal, sanitation and similar activities (1.9) Sew age and refuse disposal, sanitation and similar activities (1.8) Research and development (1.8) Financial intermediation, except insurance and pension funding (2) Research and development (1.9) 7

8 Real estate Construction Health care & social work Public administration and defence Financial intermediation Other business activities Education Retail trade Wholesale trade and commission trade Financial intermediation Post and telecommunications Inland transport Mining of metal ores Agriculture Travel & tourism activities Restaurants Travel & Tourism in Australia - Total GDP Total GDP Travel & Tourism generated more than US$37 billion in GDP in Australia in This is larger than the GDP of computer and related activities and restaurants, which amounted to $34 billion and $30 billion, respectively. Australia - Total GDP by Industry (US$bn, 2012 prices and exchange rates) Travel & Tourism s GDP impact is slightly less than the impact of agriculture and metal ore mining, which amounted to $39 billion and $41 billion, respectively. Travel & Tourism s GDP impact is approximately half of the impact of other business activities and financial intermediation, which were $78 billion and $80 billion, respectively. Travel & Tourism s GDP impact ranks 15 th among major industries

9 Real estate Construction Health care & social work Public administration and defence Financial intermediation Other business activities Education Retail trade Wholesale trade and commission trade Financial intermediation Post and telecommunications Inland transport Mining of metal ores Agriculture Travel & tourism activities Restaurants Travel & Tourism in Australia - % Total GDP Share of GDP Travel & Tourism contributed 2.4% of Australia s total GDP in This is larger than the contributions of computer and related activities and restaurants, which were 2.2% and 1.9%, respectively. Travel & Tourism s GDP contribution is on par with the contributions of the inland transport, metal ore mining, and agriculture industries. Travel & Tourism s GDP impact is slightly more than half the impact of the education sector and is a quarter the impact of the real estate industry, which had the highest GDP contribution of 10.4% in Australia - % Total Economy GDP by Industry % 10.0% 8.0% 6.0% 4.0% 2.0% 10.4% 9.7% 6.6% 5.2% 5.1% 5.0% 4.5% 4.2% 4.0% 3.5% 2.9% 2.6% 2.6% 2.5% 2.4% 2.2% 1.9% 0.0% 9

10 Travel & Tourism in Australia Industry GDP (2013, 2023) Rank Industry Industry GDP Share of Industry GDP Share of Rank Industry (US$ bn) Total GDP (US$ bn) Total GDP 1 Real estate activities % 1 Real estate activities % 2 Construction % 2 Construction % 3 Health care & social work % 3 Health care & social work % Public administration and defence; compulsory social 4 security % Financial intermediation, except insurance and pension 4 funding % 5 Financial intermediation, except insurance and pension % 5 Other business activities % 6 Other business activities % Public administration and defence; compulsory social 6 security % 7 Education % Retail trade, except of motor vehicles and motorcycles; 7 repair of household goods % 8 Retail trade, except of motor vehicles and motorcycles; % 8 Education % 9 commission trade, except of motor % 9 Activities related to financial intermediation % 10 Activities related to financial intermediation % commission trade, except of motor 10 vehicles and motorcycles % 11 Post and telecommunications % 11 Post and telecommunications % 12 Inland transport % 12 Inland transport % 13 Mining of metal ores % 13 Mining of metal ores % 14 Agriculture % 14 activities % 15 Travel & tourism % 15 Agriculture % 16 activities % 16 Travel & tourism % 17 Restaurants % Supporting and auxiliary transport activities; activities of 17 travel agencies % 10

11 Travel & Tourism in Australia GDP Share & Ranking Share of GDP & Ranking In 1990, Travel and Tourism s GDP contribution ranked tenth among major industries, contributing 2.8% of Australia s GDP. Australia - Travel & Tourism: % Total Economy GDP & Industry Rank 4.00% 3.8% By 2000, the industry s employment share increased to 3.8% and slightly raised the industry s rank to ninth, showing the increasing importance of Travel & Tourism to Australia s economy. After the global recession of 2008, Travel and Tourism s employment share dropped back to pre-2000 levels, causing its rank to drop to 14 th among major industries. Travel & Tourism s employment share and rank has remained relatively flat over the past five years and is currently 2.4% (and still ranked 15 th ) in % 3.00% 2.50% 2.00% 1.50% 1.00% 2.8% 10th 9th 2.4% 2.4% 2.4% 14th 15th 15th 2.3% 16th 0.50% 0.00%

12 Travel & Tourism in Australia Industry Performance (GDP) % total economy GDP Rank Real estate activities (11.4) Real estate activities (11.3) Real estate activities (10.5) Real estate activities (10.4) Real estate activities (10.4) Real estate activities (10.7) 2 Construction (7.9) Construction (7.4) Construction (9.5) Construction (9.6) Construction (9.7) Construction (10.6) 3 Public administration and defence; compulsory social security (6) Public administration and defence; compulsory social security (5.5) 4 Education (5.8) Health care & social w ork (5.2) 5 Health care & social w ork (5.2) Education (5.2) 6 7 commission trade, except of motor vehicles and motorcycles (4.3) Financial intermediation, except insurance and pension funding (4.1) 8 Other business activities (3.9) 9 Retail trade, except of motor vehicles and motorcycles; repair of household goods (3.4) 10 Travel & tourism (2.8) Health care & social w ork (5.8) Health care & social w ork (6.4) Health care & social w ork (6.6) Health care & social w ork (6.8) Financial intermediation, except insurance and pension funding (5.6) Public administration and defence; compulsory social security (5.1) Other business activities (4.9) Other business activities (4.9) commission trade, except of motor vehicles and motorcycles (4.5) Financial intermediation, except insurance and pension funding (4.1) Travel & tourism (3.8) Retail trade, except of motor vehicles and motorcycles; repair of household goods (3.5) Public administration and defence; compulsory social security (5.2) Other business activities (5.1) Financial intermediation, except insurance and pension funding (5.1) Public administration and defence; compulsory social security (5.2) Financial intermediation, except insurance and pension funding (5.1) Other business activities (5) Education (4.6) Education (4.5) Education (4.5) commission trade, except of motor vehicles and motorcycles (4.2) Retail trade, except of motor vehicles and motorcycles; repair of household goods (3.9) Post and telecommunications (3.2) Retail trade, except of motor vehicles Retail trade, except of motor vehicles and motorcycles; repair of household and motorcycles; repair of household goods (4.2) goods (4.2) commission trade, except of motor vehicles and motorcycles (4.1) Activities related to financial intermediation (3.5) commission trade, except of motor vehicles and motorcycles (4) Activities related to financial intermediation (3.5) Financial intermediation, except insurance and pension funding (5.9) Other business activities (5.3) Public administration and defence; compulsory social security (4.5) Retail trade, except of motor vehicles and motorcycles; repair of household goods (4.4) Education (4) Activities related to financial intermediation (3.8) commission trade, except of motor vehicles and motorcycles (3.7) 11 Agriculture (2.8) Post and telecommunications (3) Activities related to financial intermediation (3.1) Post and telecommunications (3) Post and telecommunications (2.9) Post and telecommunications (3) 12 Other mining and quarrying (2.8) Agriculture (2.8) Inland transport (2.6) Inland transport (2.6) Inland transport (2.6) Inland transport (2.8) 13 Food and beverages (2.6) Activities related to financial intermediation (2.7) Agriculture (2.4) Agriculture (2.5) Mining of metal ores (2.6) Mining of metal ores (2.6) 14 Extraction of crude petroleum and natural gas and services (2.2) Other mining and quarrying (2.6) Travel & tourism (2.4) Mining of metal ores (2.5) Agriculture (2.5) activities (2.6) 15 Inland transport (2.2) Food and beverages (2.4) activities (2) Travel & tourism (2.4) Travel & tourism (2.4) Agriculture (2.5) Supporting and auxiliary transport 16 activities; activities of travel agencies Inland transport (2.2) Restaurants (2) activities (2.2) activities (2.2) Travel & tourism (2.3) (2.1) Supporting and auxiliary transport Supporting and auxiliary transport 17 Restaurants (2) Restaurants (2.1) activities; activities of travel agencies Restaurants (1.9) Restaurants (1.9) activities; activities of travel agencies (1.9) (1.8) 18 Basic metals (2) Supporting and auxiliary transport activities; activities of travel agencies (2) Other mining and quarrying (1.8) Supporting and auxiliary transport activities; activities of travel agencies (1.9) Supporting and auxiliary transport activities; activities of travel agencies (1.9) Insurance and pension funding, except compulsory social security (1.7) 12

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